TCS shares slip 5% after Tata Sons offloads stake via block deal

  • TCS shares slip 5% after Tata Sons offloads stake via block deal

TCS shares slip 5% after Tata Sons offloads stake via block deal

In the bargain, the share price of the fastest growing IT services brand in the world - according to leading brand valuation firm, Brand Finance - cracked over 5% in the morning trade.

India's Tata Sons [TATAS.UL] is set to sell on Tuesday a roughly 1.5 percent stake in its flagship Tata Consultancy Services (TCS.NS) for about $1.25 billion. TCS is now trading flat at around Rs 2,898 apiece while the Sensex is up 0.18% at around 33,980.

Tata Sons was looking to sell around 2.83 crore shares amounting to about 1.48 percent stake in TCS, the sources added.

Citigroup Inc. and Morgan Stanley are arranging the offering of Tata Consultancy stock, according to Monday's terms. They were down 5.1%, headed for the biggest one-day decline in more than three years, at 1:13 p.m.in Mumbai. In 2017, Tatas had announced that Tata Teleservices will merge with Bharti Airtel on a no-debt, no-cash basis.

The holding company is also seeking a $1.5 billion offshore syndicated loan, as it seeks to pay down expensive debt at its telecommunications unit, people familiar with the matter said last week. The plan is to reduce the considerable debt obligations in the wireless telecom units - Tata Teleservices and Tata Teleservices (Maharashtra) - and to spruce up equity interests in key Tata group companies. The Group is clearly in a hurry to exit its troubled mobile telephony business.

Some reports said Tata Sons may already have sold stake after markets opened on Tuesday, while others suggested that the sale took place on Monday evening. Post the share sale, Tata Sons' holding in Tata Consultancy Services (TCS) has come down to around 72 percent from 73.52 percent.